FSA fines Société Générale £1.57m

The Financial Services Authority (FSA) has fined the London branch of Société Générale £1.57m for failing to provide it with accurate transaction reports.

The regulator says the fine reflects the seriousness of Société Générale’s failure to submit accurate reports for approximately 80% of its reportable transactions, across all of its asset classes, for a period of over two years.

Société Générale also breached FSA rules by failing to retain and have available all relevant transaction reporting data. Firms must keep all data related to financial transactions and make it available to the FSA for at least five years. (article continues below)

Between November 2007 and February 2010, Société Générale either failed to report, or inaccurately reported, 18.8m of its 23.5m reportable transactions.

The FSA says these breaches occurred despite it sending repeated reminders to firms of their obligations to provide accurate data and comply with FSA rules on transaction reporting.

Société Générale either failed to report, or inaccurately reported, 18.8m of its 23.5m reportable transactions

Société Générale has commissioned a formal review of its transaction reporting process and committed resources to improving its processes and resolve the errors.

The firm qualified for a 30% discount for co-operating with the FSA and agreeing to settle at an early stage. Without the discount the fine would have been £2.25m.

Margaret Cole, the director of enforcement and financial crime at the FSA, says: “Société Générale failed to accurately report a very high proportion of its transactions for a significant length of time. This failure is a serious breach of our rules as it can have a damaging impact on our ability to detect and investigate suspected market abuse.”